At a rate of 17.2 percent in January, annual inflation is up again in Poland. In December, it had been 16.5 percent.
The rise in inflation announced by Statistics Poland (GUS) was expected and was in fact a little lower than had been forecast, with estimates at 17.6 percent. The increase was inevitable, as the standard rates for VAT on energy were reintroduced to the public, which resulted in a 10 percent rise in energy costs in January. Annual inflation for food prices is also still high at 21 percent.
Inflation was even higher in October (17.9 percent) and November (17.5 percent).
According to forecasters from the Polish Economics Institute (PIE), inflation in Poland in 2023 should average out at 13 percent. It is projected to peak in February when it might reach 19-19.5 percent.
PIE forecasters stress that inflationary pressures are still strong. Two-thirds of all prices across the EU are rising at more than 5 percent, they note. In Poland, 90 percent of prices are rising at this level.
As a result, PIE analysts expect the basic rate of inflation to remain at a relatively high level and for average inflation in 2023 to end up at 13 percent.
Poland, like the Baltic nations and other countries in Central and Eastern Europe, such as Hungary and Czechia, is suffering from higher rates of inflation than those in the West.